The Arlington County Board today unanimously elected Christian Dorsey its 2019 Chair. Libby Garvey was named vice chair.

Arlington County Board Chair Christian Dorsey

Dorsey, elected to the Board in 2015, served as vice chair in 2018. He represents Northern Virginia as a principal director on the board of the Washington Metropolitan Area Transit Authority, and represents Arlington County on other regional bodies including the Board of Directors of the Metropolitan Washington Council of Governments. Read Christian Dorsey’s biography.

Focus on equity

After a sobering look at the County’s near-term budget challenges, Dorsey called for a focus on equity in County policies, both to “repair the damage that inattention to equity has already produced,” and to ensure that going forward, County policies address disparities in health and wellness outcomes, educational achievement and “many indicators of one’s ability to lead a secure and fulfilling life.”

The County must collect and analyze data “so that broad successes don’t mask real challenges people face,” Dorsey said. County government must “recognize and report on who benefits from and who is burdened by the actions of government, including budgets; land use decisions; appropriations; legislation and civic engagement. “

Saying education and dialogue is needed to repair damage already done in the community, Dorsey promised to support “to the greatest possible extent,” Virginia Humanities’ Changing the Narrative program, supporting educational and dialogue opportunities “to understand historical and current inequities in our community.”

Warning on Fiscal Year 2020 Budget

Amazon’s decision to expand its headquarters into Arlington – with a planned $2.5 billion investment and creation of 25,000 jobs over the next decade — “is a significant catalyst toward our emerging from austerity budgets,” Dorsey said. But for Amazon “to serve as a springboard for more opportunities for all Arlingtonians,” he said, “we must expertly manage its growth.” Changes that Amazon brings to the built environment must “reflect the vision of our existing plans,” Dorsey said, and the County must “prevent the displacement of residents and businesses, or the diminishment of the quality of life for all who already call Arlington home.”

Amazon’s arrival will not immediately address the challenges posed by the ongoing high office vacancy rate that has weakened the County’s tax base, increased Metro funding needs and increased local funding obligations stemming from the state’s welcome decision to expand Medicaid coverage, Dorsey cautioned. In FY 2020, he noted, the County faces a combined County-Arlington Public Schools budget gap for Fiscal Year 2020 of as much as $70 million.

Services costs exceed revenues

The County’s recent resident satisfaction survey produced high marks for County services, but today “we are in the unfortunate position of having (costs of services) significantly exceed our revenues,” Dorsey said. “We need our partners at APS to find significant savings, and we will still be left with needing to either fundamentally reduce the services that Arlingtonians expect and value, or raise revenues through a property tax increase…just to deliver the same levels of service,” Dorsey said. Read Christian Dorsey’s Jan. 2 remarks.

The County Manager will present his proposed FY 2020 Budget to the County Board in February. The Board will then launch an extensive public review process, culminating in the Board adopting the budget at its April 2019 meeting. The FY 2020 Fiscal Year begins on July 1, 2019.

Vice Chair Libby Garvey

Libby Garvey, elected to the Board in March 2012, was named vice chair by her colleagues on the Board. Garvey previously has served a term as County Board Chair. She serves on the Northern Virginia Regional Commission, Northern Virginia Transportation Commission, Metropolitan Region Council of Governments and other regional bodies.

“I believe we need to figure out together, as a community, what we want Arlington’s future to be,” Garvey said, noting that “everyone says they want to preserve what they love about Arlington, but for some people that means a quiet, tree-lined street with single family homes, and for others it means a bustling urban landscape with bikes, scooters, restaurants, food trucks, and lots of people moving around pretty much 24/7. For everyone, it means affordability.”

Garvey said her priorities include getting through “some tough budget years” by focusing on efficiencies and priorities “in a way I don’t remember us doing.” She said she looks forward to continuing to provide “smaller, more intimate settings for discussions of broader challenges and potential solutions, and to improving civic dialogue and general civility in community discussions. Read Libby Garvey’s Jan. 2 remarks.

Board Member Katie Cristol

Katie Cristol called for revising the County’s zoning ordinance to “allow different, diverse and more affordable home types throughout the County, not just in our commercial areas.” Amazon’s impending arrival “has focused our community energy on protecting our middle class from being priced out permanently, Cristol said. “We can’t squander the opportunity to tackle this hard and important work in the year ahead.”

Because the region has not grown its housing supply to match its economy in recent years, Cristol said, “we’re all feeling the consequences: an affordable housing crisis for our middle class; displacement of our working class and low-income residents.” Arlington “may be only one jurisdiction in our big region, but I know we can be leaders in establishing a better way forward.”

Cristol said she also is looking forward to the Board acting on zoning ordinance and childcare code amendments in 2019 to increase the amount of quality, affordable childcare available in Arlington.

Board Member Erik Gutshall

Noting that “2019 begins for Arlington with both awesome opportunity and daunting challenges,” as it readies for Amazon’s arrival and tackles a difficult budget for FY 2020, Erik Gutshall said that whether the year will realize the County’s “wildest dreams,” or “our worst fears,” will depend on “the choices we make, and the leadership this Board provides this coming year.”

Arlington has spent decades “preparing for Amazon’s arrival,” through long-range planning efforts and investment infrastructure, Gutshall said, but he understands why “some see Amazon primarily exacerbating our worst fears,” as they wonder what its impact may be on crowded schools, open space, regional transportation infrastructure and affordable housing.

Gutshall cited the need for a multi-year visioning and planning effort to develop a long-range comprehensive schools and community facilities plan, modernizing the County’s zoning “to allow market-driven housing forms for the middle class,” and updating the Community Energy Plan as his priorities in 2019. He proposed that the County join the Green New Deal movement to transform the economy “to tackle the twin crises of inequality and climate change.” Read Erik Gutshall’s Jan. 2 remarks.

Board Member Matt de Ferranti

Matt de Ferranti, the newest member of the Board, said he will apply four standards to his consideration of an agreement with Amazon: that it provide a significant net benefit to our whole community; that an agreement further the County’s goals with respect to housing, transportation and schools; that small businesses are fairly considered as we implement an agreement; and that the County conduct a full, fair, and transparent process for considering an agreement.

de Ferranti also identified his priorities for 2019, which include bringing down the 19 percent office vacancy rate; providing the funding to build the schools to educate every child well; addressing housing affordability via creativity and relentlessness on affordable homeownership and rental units; putting the County back in a regional leadership role on climate change, renewable energy and our environment, and working to end child hunger in Arlington. Read Matt deFerranti’s Jan. 2 remarks.

Following the Organizational Meeting, the Board joined the Arlington County Civic Federation at its General Membership meeting, held in the County Board Room. Board members fielded questions from Civic Federation members on a range of issues.

]]>County Manager Appoints Maria Meredith as New Director of Management and Financehttps://newsroom.arlingtonva.us/release/maria-meredith-new-director-management-finance/
Wed, 02 Jan 2019 19:31:21 +0000https://newsroom.arlingtonva.us/?post_type=news_release&p=20017Maria Meredith has been named Arlington County’s new Director of the Department of Management and Finance (DMF), effective January 14, 2019. She will be responsible for approximately 50 staff involved in the County’s financial operations, including management and budget, accounting, purchasing and real estate assessment.

“I am thrilled that Maria will take the helm as the new Director of Management and Finance. Over the past several years, she has been instrumental in leading efforts to build transparency and accountability across our lines of business,” said Arlington County Manager Mark Schwartz. “She will play an instrumental role in helping us manage the County’s $1 billion-plus budget.”

Arlington is one of only a handful of counties across the nation that maintains the highest debt rating available — Aaa/AAA/AAA — from all three credit rating agencies. For 18 consecutive years, the County has won praise from the rating agencies for its sound financial operations and management.

About Maria Meredith

Maria has been with Arlington County in various leadership roles since 2004. She has served as the Deputy Director of DMF for the past seven years, overseeing purchasing, accounting, accounts payable, internal audit and other related functions. During that time, she also served as the Acting Director of DMF from April 2016 to November 2016. Prior to joining the management and finance team, Maria was a Division Chief in the Department of Technology Services. She has also held leadership roles at MCI/WorldCom implementing and supporting financial and human resource systems.

Maria has a Master of Science in Information Management from Marymount University and a Bachelor of Business Administration in Accounting from the College of William and Mary. She is a member of the Leadership Arlington Class of 2009, and has been very active in the Girl Scout Community in Arlington at both the Troop and Service Unit levels for 14 years. She and her family have lived in Arlington since 1998.

About the Department of Management and Finance

The County’s Department of Management and Finance is responsible for financial management, capital and operating budget development, annual real property assessments, economic analysis, purchasing, accounting and internal audit, and financial information for the County Board, the public, the County Manager and County departments.

Maria will succeed Stephen Agostini, DMF Director, who has accepted a position outside of County government.

]]>Arlington County Board November Recessed Meeting Actionshttps://newsroom.arlingtonva.us/release/arlington-county-board-november-recessed-meeting-actions/
Wed, 28 Nov 2018 04:10:15 +0000https://newsroom.arlingtonva.us/?post_type=news_release&p=19693The Arlington County Board today approved Virginia Hospital Center’s expansion plans, a $3.025 million loan to renovate senior housing in Ballston, and guidance that will set the parameters for the County Manager’s proposed Fiscal Year 2020 Budget at its November Recessed Meeting.

Tax hikes, service cuts, staff reductions to be considered to close budget gap

The Arlington County Board today directed the County Manager to provide options for tax increases and service and personnel cuts, if necessary to prepare a balanced Proposed Fiscal Year 2020 Budget.

“We face the reality of a $20-$35 million gap between anticipated expenditures and anticipated revenues,” County Board Chair Katie Cristol said. “The Board is committed to meeting increased funding needs for Metro, Medicaid expansion and Schools, and to maintaining our funding level for affordable housing, while remaining responsible and responsive to the impacts any tax rate increase will have on Arlington residents. In the coming months, this Board will work closely with the Manager and the community to stay true to our values and maintain core services while finding the right balance, if necessary, of service cuts and revenue increases.”

The Board voted unanimously to approve the guidance. The overarching guidance asked the Manager to “provide for long-term financial sustainability; preserve the County’s triple-AAA bond rating; and fully fund all debt, lease and other contractual commitments,” in his proposed budget.

The Board directed the Manager to provide options for program and personnel reductions or eliminations and a possible tax rate increase, if he cannot present a balanced budget within the existing tax rate. If the Manager proposes a tax rate increase, the Board said, it should be to:

Meet new legislative requirements, including Medicaid expansion and WMATA funding.

Continue with the compensation and staffing adjustments for public safety and general employees that the Board adopted in April 2018;

Maintain existing infrastructure by providing funds to maintain the state of good repair as outline in the adopted Capital Improvement Plan; and

Provide operating funding for new Arlington Public Schools facilities opening in FY 2020.

The Board also asked that the Manager propose long-term efficiencies and improvements in service delivery.

To read the guidance, visit the County website. Scroll to Item No. 31 on the agenda for the Tuesday, Nov. 27, 2018 Recessed County Board Meeting.

Maintaining affordable housing funding

Funding for the Affordable Housing Investment Fund, the County’s primary source for funding the creation and preservation of affordable housing, should be maintained at current levels, according to the Board’s guidance. Both one-time and ongoing funds should be used, with an effort to shift more of that funding into the ongoing base budget.

Funding for APS according to revenue allocation agreement

The Board directed the Manager to provide funding consistent with the Revenue Sharing Principles between the County and Arlington Public Schools, and to apply the County/School revenue allocation reflected in the FY 2019 budget (53.4 percent County-46.6 percent Schools). Most of APS’s funding comes from revenue sharing with the County.

Manager to present proposed budget to Board in February

Working with County departments and the community, and within the Board’s guidelines, the Manager will build a proposed budget to be presented to the Board in February. The Board will review the budget through a series of work sessions, consider comments from the public and hold public hearings in March and April. The Board will adopt the budget in April. Fiscal Year 2020 year will begin on July 1, 2019.

Fiscal Year 2018 close-out

The Board also voted unanimously to close-out Fiscal Year 2018’s budget and to allocate $21.9 million in funds not needed for reserves, restricted funding, allocations already approved by Board action, or for continuing projects that straddle fiscal years.

Excluding funds required for reserves, restricted funding, allocations already approved by Board action, or for continuing projects that straddle fiscal years, the balance was $21.9 million in discretionary funds. The $21.9 million is 2.6 percent of the revised FY 2018 County General Fund budget, excluding schools. Adopting the recommendations of the County Manager, allocation of available funds was made to three areas:

$16.5 million set aside for FY 2020 budget deliberations.

$6.4 million to increase the General Fund Operating Reserve from 5.0 percent to 5.5 percent, a critical step in ensuring the County’s triple-AAA rating.

$2.0 million to an operating contingent to respond to needs not budgeted during the current fiscal year.

Board Member John Vihstadt praised the action, noting that the $16.5 million set aside for the FY 2020 budget deliberations, (approximately 75 percent of the total surplus), would be an invaluable source of one-time funds during next year’s challenging budget deliberations.

To read the staff report and view the staff’s presentation on the FY 2018 close-out, scroll down to Item No. 30 on the Agenda for the Tuesday, Nov. 27, 2018 Recessed County Board Meeting.

About the budget

Each year, Arlington County adopts a balanced operating budget that provides a blueprint for spending on County services and administration for the coming fiscal year, which begins July 1. Budget priorities are set by the County Manager and the County Board, through engagement with the Arlington community.

Arlington’s sound financial management practices have earned the County the coveted Triple-AAA rating from bond agencies for the past 18 years. By maintaining the highest possible bond rating, Arlington County saves taxpayers millions of dollars by ensuring it receives the lowest possible interest rate on the debt it incurs to finance public infrastructure and other projects.

In April 2018, the County Board adopted a $1.276 billion balanced budget with no increase in the real estate tax rate. Arlington’s tax rate, at $1.006 per $100 of assessed value (including the stormwater tax), is one of the lowest in the region.

]]>November County Board Meeting Agenda Highlightshttps://newsroom.arlingtonva.us/release/november-county-board-meeting-agenda-highlights/
Fri, 09 Nov 2018 14:34:00 +0000https://newsroom.arlingtonva.us/?post_type=news_release&p=19454The Arlington County Board will consider dozens of items at its November 2018 meeting. The Regular Meeting is scheduled for Saturday, Nov. 17. Due to the Thanksgiving Holiday, the Recessed Meeting will be held Tuesday, Nov. 27. The County Board meeting is held on the third floor at the Ellen M. Bozman Government Center, 2100 Clarendon Blvd., and is open to the public. Visit the County website for information on speaking at a Regular County Board Meeting.

Watch it Live

All County Board meetings are live-streamed on the County website, and broadcast live on the County’s cable channel, ATV, with live captioning. You can watch the Board Meetings on Comcast 25 & 1085 (HD), and Verizon FiOS 39 & 40, or live-streamed on YouTube. Videos of Board meetings are archived on the County website (with captions and reports) and on YouTube.

Saturday, Nov. 17 – County Board Regular Meeting

(Note: The meeting starts at 8:30 a.m. with public comment. Some reports will be posted closer to the meeting date.)

New Elementary School at Reed site: The Board will hold a public hearing and consider a proposal to renovate and expand the Reed School/Westover Library building to create a new neighborhood elementary school. The new school would serve up to 732 students.

Arlington Public Schools is seeking an amendment to a use permit approved in 2007. The Reed School/Westover Library building currently serves as an interim facility for the Stratford Program.

A joint review of the proposed project by the Public Facilities Review Committee and Building Level Planning Committee began in October 2017. During an extensive public engagement process, several County advisory commissions reviewed the proposed project, and the Arlington Public School Board has approved the schematic design. To read the staff report, scroll to Item No. 27 on the agenda.

Four Mile Run Valley Area Plan:The Board will hold a public hearing and consider adopting the draft Four Mile Run Valley Area Plan, focused around the Four Mile Run stream and floodplain. The plan, together with the Four Mile Run Valley Parks Master Plan and Design Guidelines adopted by the Board in September 2018, offers a comprehensive vision, policy framework and specific strategies that will guide future development in the area bounded by Interstate 395 to the east, Arlington Mill Drive to the south, Barcroft Park to the west and Four Mile Run Drive to the north. Four Mile Run Valley is one of the only remaining contiguous areas planned and zoned for industrial uses in Arlington and is home to 23 acres of parks. The Four Mile Run Valley planning process was initiated in 2016 as a comprehensive planning effort. To read the staff report, scroll to Item No. 26 on the agenda.

County Seal

2019 General Assembly Legislative Package: The Board will hold a public hearing on the draft 2019 General Assembly Legislative Package, before voting on it at its December 15, 2018 meeting. The 2019 General Assembly session will begin on January 9, 2019.

Priorities in the draft package include fully funding K-12 education; ensuring dedicated transportation funding that is stable and predictable for both capital projects and transit operations; re-examining assumptions that led to reduced funds for Community Services Boards in Fiscal Year 2019 and Fiscal Year 2020, and if reimbursements for new Medicaid enrollments do not equal the reductions, restore the difference in current and future funding.

Other priorities include reconciling federal tax changes and court decisions by adopting statutory changes that will enable Virginia to collect sales and use taxes from internet sales and ensuring extra revenue coming to Virginia from the Federal Tax Cut and Jobs Act is used to meet state and local priorities. To read the staff report and view the legislative package, scroll to Item No. 28 on the agenda.

The Board will take all public comments into consideration before voting on the draft package in December, and will hold a work session with the Arlington General Assembly delegation. County staff worked with the County’s boards and commissions, departmental staff, the public and County Board members through the summer and fall to develop the draft package.

Neighborhood Conservation Funding: The Board will consider approving $2.92 million in Neighborhood Conservation bond funds for two Neighborhood Conservation projects. The projects, recommended by the Neighborhood Conservation Advisory Committee, would use the last funding from the 2016 Neighborhood Conservation Bond approved by Arlington voters. One project would make street improvements and install streetlights on N. Monroe Street, from 17th Street N to 3612 19th Street N, in Cherrydale and the other would improve Edison Park on N. Edison Street in Arlington Forest. To read the staff report, scroll to Item No. 17 on the agenda.

At its September Meeting, the Board held an hours-long public hearing on the proposed expansion, then issued guidance to the hospital to work out specific details of the proposed design with neighbors. The public hearing on this item is closed, and the matter will be before the Board for a final decision at the November meeting. To read the staff report, scroll to Item No. 33 on the agenda. (The staff report for this item will be posted the week of November 12 through 27).

In a separate, related action, the Board will consider accepting a grant from Virginia Hospital Center to fund a licensed clinician for five years to provide adolescent behavioral health crisis stabilization services. To read the staff report, scroll to Item No. 34 on the agenda. (The staff report for this item will be posted the week of November 12 through 16).

FY 2020 Budget Guidance/FY 2018 Close-Out: The Board will hold public hearings on its budget guidance for Fiscal Year 2020 and the proposed use of FY 2018 close-out funds. The County Manager has noted that the projected increase in revenues for FY 2020 is not keeping pace with budget pressures in expenditures, creating an expected budget gap of $20 million to $35 million for the fiscal year that may be closed through a combination of revenue increases and/or service reductions. To read the staff reports, scroll to Items No. 30 and 31 on the agenda. (The staff reports for these items will be posted the week of November 12 through 16).

$3 Million CDBG funds loan to renovate The Carlin, a senior housing project: The Board will consider approving a $3 million federal Community Development Block Grant fund loan to renovate The Carlin, a senior housing project at 4435 N. Pershing Drive. Most of the residents of the 162-unit, 10-story building in the Ballston Metro corridor are low-income retirees who are 60 years old or older. Sixty percent live on less than $20,000 a year. The loan would be made to the Retirement Housing Foundation, one of the nation’s largest non-profit developers and managers of housing and services for older adults, persons with disabilities and low-income families.

Under the proposed agreement, the County will require that 161 of the 162 units be committed affordable for 60 years (one will be a management office). Fifty-nine units will be restricted to seniors earning at or below 50 percent the Area Median Income (AMI), an increase of 26 very-low-income units in the building. The remaining 102 units will be restricted at or below 60 percent of AMI. Residents will be housed on-site in “swing” apartments during renovations planned to be phased over 18 months.

To read the staff report, scroll to Item No. 32 on the agenda. (The staff report for this item will be posted the week of November 12 through 16).

]]>County Manager Recommends Uses for Unspent FY 2018 Fundshttps://newsroom.arlingtonva.us/release/county-manager-recommends-uses-for-unspent-fy-2018-funds/
Sat, 20 Oct 2018 21:25:30 +0000https://newsroom.arlingtonva.us/?post_type=news_release&p=19110County Manager Mark Schwartz has recommended to the County Board ways to use unspent “close-out” funds from the County’s 2018 fiscal year, which ended on June 30. The recommendations focus on shoring up the County’s finances and providing flexibility for closing an anticipated budget gap for the coming 2020 fiscal year.

In all, the County ended FY 2018 with $21.9 million in unspent, unrestricted funds available for the County Board to allocate. The amount represents about 2.6 percent of the total revised FY 2018 budget, which is consistent with the agency ratings minimum expectations. The recommendations include:

Increasing the County’s Operating Reserve: $3.4 million to increase reserves from 5.0 percent of the annual budget to 5.5 percent. The move would shore up the County’s financial position and demonstrate to credit-rating agencies the County’s commitment to maintaining healthy reserves in case of major extraordinary unexpected events. (Consistent with County/Schools Revenue Sharing Principles, the Schools will contribute $3.0 million from their funds towards this operating reserve.)

Providing Operating Contingent for Current Fiscal Year: $2.0 million to address unforeseen needs that arise in FY 2019 without reprioritizing or cutting other programs. This could include unanticipated consultant needs, software licensing requirements and/or facility repairs.

Providing Flexibility for FY 2020 Budget Deliberations: $16.5 million to provide flexibility in closing the County’s anticipated budget gap for FY 2020, with a focus on supporting one-time needs rather than new initiatives or ongoing costs. Final use of the funds would be determined by the County Board after the Manager outlines options in his proposed budget in February.

“We’re looking at one of the toughest budget years I’ve seen in my time with the County,” Schwartz said. “By not allocating all of this year’s close-out dollars to specific needs now, we’ll have more flexibility in addressing our coming-year budget crunch in the spring.”

In recent years the County has generated operating surpluses at the end of its fiscal year. The FY 2018 budget was adopted in April 2017, and over the months of July 2017 through June 2018 revenue and expenditures changed, as is typical.

Arlington’s operating surpluses have been decreasing over the past few years — the result of many factors, including better budget execution and financial management practices. This year saw a spike, however, driven by savings from a slowdown in County hiring, with managers holding vacant positions open in the face of looming budget pressures. The County also realized about $7 million in savings on employee healthcare, mainly due to lower-than-expected claims payments.

While declining operating surpluses are a sign of good financial practices, it’s important to maintain healthy end-of-year fund balances, mostly in the form of reserves.

The County ended FY 2018 with a total end-of-year General Fund balance of $181.9 million — about 14.7 percent of total General Fund revenues. The biggest portion, about $72.8 million, was the County’s reserves. The next biggest portion was $54 million for the Affordable Housing Investment Fund, which provides loans to developers to build or preserve affordable housing in the County.

This is the fourth consecutive year that Arlington County has seen its fund balance decline. Over the same period, peer governments have maintained higher fund balances. Other triple-AAA counties in the U.S. have fund balances equaling 36 percent of total General Fund revenues, on average. Neighboring peer governments have balances of 20 percent, on average. These comparisons underscore the need to shore up reserves in the near term in order to preserve the County’s high credit ratings.

Next Steps

The County Board will vote on the Manager’s closeout recommendations at its November meeting. At that time, the Board will also issue its guidance to the Manager as he develops a proposed budget for FY 2020.

Share feedback on the Manager’s closeout recommendations by emailing dmf@arlingtonva.us. Comments will be compiled and shared with the County Board.

]]>A Visual Version of Arlington’s FY 2020 Budget Outlookhttps://newsroom.arlingtonva.us/release/a-visual-version-of-arlingtons-fy-2020-budget-outlook/
Tue, 09 Oct 2018 14:26:40 +0000https://newsroom.arlingtonva.us/?post_type=news_release&p=18878County Manager Mark Schwartz’s early budget outlook for FY 2020 shows a gap that could require cuts to public services, increased taxes and fees, or a combination of the two. Check out the visual infographic below to learn more about the pressures on this year’s budget and the options on the table to close the gap.

Did you miss the Manager’s Oct. 17 Virtual Town Hall?Watch here to learn more about this year’s gap. And follow every step of Arlington’s budget process at budget.arlingtonva.us.

Arlington County faces an estimated budget gap of $20-35 million for its 2020 fiscal year, which could require cuts to County services, increased taxes and fees, or a combination of the two.

County Manager Mark Schwartz provided the news in a briefing to the County Board at its Sept. 25 meeting. He said that County revenues are forecast to grow by a modest 1.5 percent, while expenditures for the County’s current set of programs are anticipated to grow twice as fast.

Additional costs that contribute to the shortfall include more funding to support Metro, invest in public facilities, maintain competitive compensation for County workers including commitments to increase public safety pay, stabilize funding for affordable housing, and support Medicaid expansion.

The Manager’s budget gap estimates do not include additional funding needs for Arlington Public Schools, which could reach $43 million due to significant enrollment growth and rising expenditures.

Closing the gap: a multi-year approach

Schwartz warned that the coming year is likely to be tougher than the last one, when the County Board approved a combination of spending reductions and tax and fee increases, while leaving real estate tax rates unchanged.

“This is going to be the most challenging budget year yet in my tenure with the County,” Schwartz said. “I believe I said the same thing last year, so this year is going to require even more serious and potentially difficult conversations about how to balance our revenues and expenses,” he said.

According to Schwartz, all options for balancing the FY 2020 budget are on the table. And the budget challenges facing the County will require an ongoing, multi-year approach.

“My goal is to keep all options available for consideration,” Schwartz said. “Unfortunately, this could include cuts to County services that our community values. It might also mean increases in taxes and fees, even property tax rates, which I recognize affects families’ bottom lines.”

“And I think we’re going to be facing several years of difficult decisions,” Schwartz said. “It’s going to take us more than one or two budget cycles to fully implement the kinds of efficiencies and other cost-saving measures needed to put us on a more sustainable path.”

The majority of County revenue comes from taxes on commercial and residential real estate, and these revenues grow when property values rise, or when the County Board approves an increase in the tax rate. The current rate of $0.993 per $100 of assessed value (not including stormwater rates) is one of the lowest in Northern Virginia.

Homeowners and businesses in Arlington shoulder roughly equal parts of the property tax burden, unlike in neighboring jurisdictions. This means that when commercial property values rise at slower rates, as they have in recent years due to high office vacancy rates, it often drags down any revenue growth resulting from rising home values.

County Manager seeking input this fall

As the County Manager begins developing his FY 2020 Proposed Budget this fall, he will gather input from his leadership team, County employees, the County Board and the public. On Oct. 17, the Manager will host a Virtual Town Hall to provide more information to the public and gather input about budget priorities. In November, the County Board will provide its budget guidance.

This year, the Manager will also draw on the County’s latest Community Satisfaction Survey to help identify budget priorities. The comprehensive survey was sent out to a randomly selected sample of Arlington households in August to gauge satisfaction with various aspects of County programs and services.

The County Manager will present his proposed budget to the County Board in February 2019. The Board will then hold a series of work sessions and two public hearings before adopting a final budget in April.

Learn more about the budget, the Oct. 17 Virtual Town Hall and how you can weigh in at budget.arlingtonva.us.

]]>Highlights from the July County Board Meetinghttps://newsroom.arlingtonva.us/release/highlights-from-the-july-county-board-meeting/
Sat, 14 Jul 2018 18:40:42 +0000https://newsroom.arlingtonva.us/?post_type=news_release&p=17746The Arlington County Board adopted a 10-year infrastructure plan and acted on dozens of other items at its Saturday, July 14, 2018 Regular County Board Meeting. Here are a few of the highlights:

Funding Metro, schools, parks, transportation, community facilities, water and sewer infrastructure and more

$144 million County bond referenda approved for November ballot

The Arlington County Board today approved a $3.4 billion combined County and Schools 10-year Capital Improvement Plan (CIP) for fiscal years 2019-2028. The Board’s action culminated months of public engagement and review of the proposed budget presented in May by the County Manager.

“In this time of constrained budgets, the Board focused on maintaining Arlington’s existing infrastructure in a state of good repair, while investing in Metro, Schools and funding necessary transportation projects,” Arlington County Board Chair Katie Cristol said. “Many members of our community shared comments with the Board about their priorities for our limited capital improvement dollars, and ‘maintaining what we have’ was a key theme. We also funded existing near-term commitments, including completion of Fire Station 8, Jennie Dean and Rosslyn Highlands parks and Lubber Run Community Center.”

The Board accepted the Manager’s recommendation to defer some projects included in previous CIPs, and reduce funding for others. A new regional funding agreement for Metro redirected significant revenues — approximately $230 million over 10 years — away from local and regional transportation projects.

The Board also accepted the Manager’s recommendation to scale back funding to redevelop the County’s recently acquired Buck and Carlin Springs properties, to renovate the County’s Courts/Police building, and to fund Neighborhood Conservation projects.

“Although there are few new capital improvement projects, we were able to meet our commitment to Metro, which is vital to the health of this County, and to our public schools, which will continue to rank among the best in the nation and continue to accommodate growth in enrollment. We also will be able to fund core infrastructure needs, while preserving Arlington’s sound financial outlook,” Cristol said.

The Board voted unanimously to adopt the CIP, which is updated every two years.

Working Group to examine Neighborhood Conservation Program

In a related action, the Board voted unanimously to direct the County Manager to form an ad hoc working group this fall to analyze, review and possibly restructure the County’s long-standing Neighborhood Conservation Program. A variety of neighborhood infrastructure projects, including streets, curb and gutter and sidewalk improvements, are funded through this program, launched in 1964 as a grass-roots approach to neighborhood safety improvements and beautification. The working group will present findings and recommendations to the Manager by September 30, 2019, in time to inform the next CIP in FY 2021.

Parks land acquisition

The Board reallocated funds, mostly from within the parks program, allowing the County to continue strategic park land acquisitions in keeping with the goals of the soon-to-be-adopted Parks Master Plan.

Army Navy Country Club access road

The Board also directed the Manager to shift a total of $230,000 to fund the development of preliminary design and engineering plans for emergency vehicle access and a possible bicycle-pedestrian path on the Army Navy Country Club access road. The funds were shifted from funding the Manager proposed for the County’s WALK Arlington and Outside Major Corridors elements of the CIP in Fiscal Years 2019 – 2021. The access road preliminary design and engineering study will determine whether such a path is feasible, requirements and implications for the project of the Americans with Disabilities Act, and a refined cost estimate.

Stormwater

The Board directed the Manager and staff to enhance the communications and outreach plan for educating and informing the public about the County’s stormwater program and flood reduction projects, and actions property owners may take to reduce their exposure and risk to flooding impacts.

For details on the adopted CIP, visit the County website.

The Arlington Public Schools Board adopted the Schools CIP on June 16.

County CIP highlights:

Strategic investments:

Arlington Public Schools: Support for APS’s $614 million plan to meet the challenge of growing enrollment, including $103 million for its 2018 referenda request.

Metro and Transportation: $1.6 billion in investments, including the County’s continued $54 million commitment to Metro over the next two years.

Fire Station 8: $14 million to fund construction for a new two-story fire station at 4843 Lee Highway to meet Fire and Emergency Medical Service program needs.

Neighborhood Conservation: Funding reduced from $60 million in last CIP to $37 million. The Board included an additional $1 million, above the Manager’s proposed $36 million, at CIP adoption.

Technology: More than $127 million over 10 years, including:

Enterprise Information Technology – $50 million to maintain and replace the County’s information technology and equipment to provide a reliable and secure environment.

Public Safety Information Technology – $76 million to refresh or replace existing public safety systems in an operable and responsive way.

Maintenance:

Parks and Facilities:

The CIP focuses on maintaining parks and facilities in a state of good repair. Core infrastructure will be maintained in a reliable, serviceable condition. Assets will be protected from premature failure and unnecessary risks and losses will be reduced.

Paving: $135 million over 10 years

$27 million in first two years will maintain current paving condition index (PCI).

Water/sewer system infrastructure: $499 million over 10 years

$155 million for maintenance and upgrades to the water pollution control plant based on the Solids Master Plan

$208 million for water sewer maintenance capital

Financial sustainability

The adopted CIP is within the financial and debt management policies adopted by the Board, policies that are key to maintaining Arlington’s triple-AAA bond rating. The County is one of a handful of counties across the nation that maintain a triple-AAA bond rating, ensuring it access to the lowest interest rates when borrowing money.

2018 referenda

The 2018 bond referenda approved unanimously today by the Board will appear on the November 6, 2018 ballot. The referenda includes the following categories of projects:

Metro and Transportation – $75 million

To meet Arlington’s obligation to Metro and fund street paving, streetlight maintenance, bicycle and pedestrian improvements and more

To fund Neighborhood Conservation (at a reduced rate) and provide final funding for completion of Nauck Town Square

Background

Arlington updates its Capital Improvement Plan every two years. The plan outlines the County’s long range capital investment objectives. The adopted CIP includes referenda amounts requested by the Arlington Public Schools Board that are put before voters in November.